A multi-year motor vehicle insurance plan guarantees you protection for a long span without any complications. It also affords you security against any legal liabilities sustained because of injury, damage or death caused to a third party. A vehicle insurance policy for multiple years is usually more economical than buying the same policy every year. The greatest benefit of acquiring a multi-year motor insurance policy is the convenience of not being forced to keep renewing the plan every year.
Benefits of the Multi-Year Motor Insurance
Some benefits of a multi-year motor insurance are as listed below.
- Convenience of not having to renew insurance policy every year: Opting for this mode can result in having to eventually pay more premium, but it is less taxing. This is because you are paying it for a span of three to five years, at one go. Once the premium is compensated for, it will depend on the type of your vehicle whether your next insurance renewal will be after three or five years.
- You can still easily change your insurance provider: Buying an insurance policy for three to five years in no way means that you have to stay faithful to the same provider for the term. This plan is fully flexible; you have full freedom of porting your provider to acquire better coverage and also get the best deals. These deals are akin to the likes of those that are offered on National Car Insurance renewals.
- Beat the price hike with multi-year insurance policies: The Government of India increases the rates of motor vehicle insurance policies every financial year. You are free from having to worry about this problem since you have already paid your premium. Typically, in case of multi-year motor insurance you do have to pay in advance. You are, therefore, not burdened with the extra expenditure incurred due to this hike.
- Less uninsured vehicles on Indian Roads: With multi-year insurance policies becoming flamboyant, the count of uninsured vehicles on Indian roads will surely decrease. The reason that Indian roads are so full of uninsured vehicles is that people forget to keep renewing their insurance policies every year. However with this system, since you have already paid the premium, you have to worry about renewing your insurance policy after three or five years.
Why one needs Multi-Year Motor Insurance
It is necessary to avail this motor insurance online according to the regulations of the Hon’ble Supreme Court of India. This order states that the Insurance Regulatory and Development Authority of India has made it compulsory for all general insurance policy providers of India to offer multi-year motor insurance policies to all vehicles that have been sold post 1st of September, 2018. Thus, the insurance providers will have to offer multi-year insurance coverage policies instead of single year policies. These could be up to three years for cars and up to five years for bikes.
This is one major masterstroke of the insurance industry as it will singlehandedly provide long term coverage to our vehicles. Additionally, it will also vastly reduce the number of uninsured vehicles on the roads, and save customers the hassle of having to renew their motor insurance policies every year. However, this rule only pertains to the vehicles purchased between the 1st of September 2018 and the 31st of March 2019. Moreover, the comprehensive two wheeler insurance plans can still be renewed every year.